All things come to an end and sadly Anchor Brewing the oldest craft brewery in the United States, is closing after 125 years in business.
The San Francisco-based company announced Wednesday that it will cease operations and liquidate the beloved business “in the wake of a combination of challenging economic factors and declining sales since 2016,” according to a news release. Craft brewers, in particular, have been struggling for a variety of reasons, including changing consumer habits, rising costs and persistent supply chain challenges.
Another problem has been Sapporo, the Japanese brewing company that bought the brand in 2017. Employees complained about Sapporo’s alleged mismanagement and lack of understanding of craft beer in the United States. In addition, Anchor’s 2021 redesign was also criticized for moving too far away from the brand’s classic look.
“This was an extremely difficult decision that Anchor arrived at only after months of careful evaluation,” said Sam Singer, spokesperson for Anchor Brewing.
He added that “the impacts of the pandemic, inflation, especially in San Francisco, and a highly competitive marketplace left the company with no choice but to make this sad decision to cease operations.”
Workers at Anchor Brewing, which employs 61 people, received a legally required 60-day notice on Wednesday and will receive “transition support and separation packages.” Beer production has stopped immediately and available beer will continue to be sold until the end of July.
Last month, Anchor scaled back its national distribution, limiting sales only to California, and announced it would cease production of its acclaimed Christmas Ale after nearly 50 years of production. (A “small quantity” of their Christmas Ale is currently being sold at their locations while supplies last).
Anchor said those decisions were made to “cut costs while trying to evaluate all possible outcomes,” however, “in the end, expenses simply continued to outpace revenues, leaving the company with no other viable option.”
Sapporo has made “repeated efforts” over the past year to sell the business, according to Anchor. But those efforts have failed, although Anchor mentioned that it is “possible that a buyer will emerge during the liquidation process” for the brewer.
Anchor Brewing: 127 years of history
Anchor Brewing began in 1896 in San Francisco, becoming the nation’s first craft brewery. Fritz Maytag, a descendant of Maytag Corporation, bought Anchor in 1965 when it was on the verge of bankruptcy and helped jump-start the craft beer industry in the United States. Its most prominent beer was Steam Beer, an amber ale.
Under Sapporo’s ownership, Anchor’s beer production has largely declined every year (except 2021), according to the Brewers Association. Brewbound, a brewing industry website, previously reported that Sapporo’s recent purchase of craft brewer Stone Brewing raised concerns among Anchor employees about how their brewery fits into Sapporo’s plans.
